Orco Property 2007 net profit down but revenues up sharply

Central and Eastern European developer Orco Property Group said its net profit slipped to EUR 87.5 mln in 2007 from EUR 96.7 mln as it released final 2007 figures showing that revenues headed the other way, rising 73% to EUR 299 mln.

Orco also showed a restated net asset value (NAV) per share figure of EUR 91.7 after including for the first time its subsidaries’ NAV rather than market value. That was up from a restated NAV of EUR 77.9 per share in 2006. Orco also revised upwards its old NAV calculation, which is based on the market value of shares held in subsidiaries, to EUR 106.3 per share from the EUR 104 per share estimate it had provided when releasing preliminary results in January. Orco said DTZ had valued its property portfolio at EUR 2.4 bn at end-2007.

Revenues from Orco’s key development activities rose 55% to EUR 192.8 mln in 2007 and, given a backlog of 894 signed future purchase contracts, Orco said it was highly confident it would meet an objective of EUR 197 mln from development activities in 2008. The group is targeting overall turnover of EUR 330 mln this year.

Orco said it would also pay out a dividend of EUR 1.40 on 2007 earnings, up 40% from the year earlier.